Historic Step !! Modi Government’s Biggest Decision In 92 Years – Check It Out Here

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It took 92 years to take this decision !! The 92-year-old tradition is going to end next year. There will be no more separate Railway budgets from the next fiscal year.

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Yesterday, Union Cabinet approved the merger of the annual railway budget with the Union general budget. The separate Railway Budget, a 92-year-old tradition, has been scrapped by the centre.

 

Suresh Prabhu tweeted it as a historic step. He added,

“This will help raise capital expenditure in Railways which will enhance connectivity in the country and boost economic growth. Functional autonomy, distinct identity of Railways will remain as it is.Our efforts to leverage extra-budgetary resources will continue.The merger would also facilitate an integrated and seamless approach towards transportation strategy in the country.”

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Railways has an annual outgo of Rs 33,000 crore on subsidies for passenger service. Railways has to also bear an additional burden of aroundRs 30,000 crores on account of implementation of the 7th Pay Commission. 

At present, the wage bill of railways is around Rs 70,125 crore and pension bill is about Rs 45,500 crore while the annual fuel bill is more than Rs 23,000 crore.

This move is expected to save about 9700 crores from the next fiscal because till now Railways was paying this amount as a dividend.

The presentation of separate Railway budget was started in the year 1924. And after 92 years, this great move has been taken by Modi Government.

Speaking to the reporters after the Cabinet meeting, Finance Minister Arun Jaitley said,

“Rail budget and general budget will be amalgamated. From now on, there will only be one budget. However, the functional autonomy of Indian Railways will continue to be maintained.”

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This idea of merging the railway budget with the union budget was first recommended by Niti Aayog Member Bibek Debroy.

 

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